The title looks OK to me. I would have no hesitation in replacing the lug.
The badge in the scan appears to be a slightly different die. You have to beware of the cloth titles which have been extensively copied.
I would assume these were worn with the curved Australia title in 1916, after which (like many other Australian metal titles) they were replaced by colour patches.
They are indeed quite rare, although mine cost me something like $10 about 15 years ago, one of my earliest Ebay purchases. You could expect to pay a lot more now.
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